Pacific Premier Bancorp Inc (PPBI) Announces Q3 2023 Earnings and Dividend of $0.33 Per Share
Net income of $46.0 million, or $0.48 per diluted share
Return on average assets of 0.88%, return on average equity of 6.43%
Net interest margin of 3.12%
Common equity tier 1 capital ratio of 14.87%
Pacific Premier Bancorp Inc (NASDAQ:PPBI) announced its third quarter 2023 financial results on October 24, 2023. The company reported a net income of $46.0 million, or $0.48 per diluted share, compared to $57.6 million, or $0.60 per diluted share, for the second quarter of 2023, and $73.4 million, or $0.77 per diluted share, for the third quarter of 2022.
Financial Performance
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PPBI's return on average assets was 0.88%, return on average equity was 6.43%, and return on average tangible common equity was 10.08%. The company's total assets were $20.28 billion at the end of Q3 2023, compared to $20.75 billion at the end of Q2 2023, and $21.62 billion at the end of Q3 2022.
CEO Commentary
Steven R. Gardner, Chairman, Chief Executive Officer, and President of the Company, commented,
Our teams continue to deliver solid results in a challenging economic and interest rate environment. We maintained our disciplined focus on prudent and proactive risk, liquidity, and capital management during the quarter."
Financial Highlights
For the third quarter of 2023, PPBI reported a net interest income of $149.5 million, a decrease of $10.5 million, or 6.6%, from the second quarter of 2023. The decrease in net interest income was primarily attributable to a higher cost of funds as a result of the current interest rate environment and lower average loans and investment securities balances, partially offset by higher interest-bearing cash balances.
Asset Quality and Allowance for Credit Losses
At the end of Q3 2023, PPBI's allowance for credit losses on loans held for investment was $188.1 million, a decrease of $4.2 million from Q2 2023, and a decrease of $7.5 million from Q3 2022. The decrease in the allowance for credit losses from Q2 2023 and Q3 2022 was commensurate with the relative decreases in loans held for investment balances.
Dividend Announcement
Alongside its Q3 2023 results, PPBI also announced a quarterly cash dividend of $0.33 per share.
Looking Ahead
Despite the challenging economic and interest rate environment, PPBI remains focused on prudent and proactive risk, liquidity, and capital management. The company is also committed to pursuing organic and strategic growth opportunities that align with its commitment to producing long-term value for its shareholders.
This article first appeared on GuruFocus.
